EVIDENCE GUIDE

Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.

Overview of assessment requirements

To achieve competency in this unit, a person must be able to demonstrate:

thorough knowledge of types and categories of insurance policies, industry codes of practice and relevant legislation

loss adjusting principles and practice

data analysis and evaluation techniques

Critical aspects of evidence

Evidence required for demonstration of consistent performance:

Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the particular workplace environment and should cover all necessary knowledge and skills requirements.

Delivery/assessment relationship to other units:

This unit may be assessed independently, however demonstration of competency in the following unit is a prerequisite:

FNSLOSS501B Plan and implement loss investigation.

Assessment requirements

Method of assessment:

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on required knowledge and skills and other methods as required.

Context of assessment:

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment:

This unit may involve simulation equipment, facilities for workplace or simulated environment assessment, availability of qualified assessors.

REQUIRED KNOWLEDGE&SKILLS

Knowledge requirements include:

knowledge of the insurance industry

contract and commercial law principles

insurance law relevant legislation and industry codes of practice

types/categories of insurance policies

policy coverage/requirements

loss adjusting principles and practice

claims management

principles of cost estimating

salvage methods

recovery

subrogation

insurable interest

contribution

data analysis techniques/procedures

business mathematics and statistics

Skills requirements include:

analytical, evaluative and deductive reasoning

problem solving

calculation and estimating

data analysis techniques/procedures

record keeping

communication and listening skills

time management

using computer databases, member/client databases and telecommunication devices

maintaining currency of industry products and services knowledge

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Types and categories of insurance policies include:

domestic

multi risk

defined events

accidental damage

liability

additional benefits

travel

other personal lines

commercial

fire and perils

business interruption

package contracts

Industrial Special Risks (ISR)

construction risks

machinery breakdown

boiler explosion

transit

sprinkler leakage

burglary/theft

money

fidelity

livestock

crop

Liability includes:

public

products professional indemnity

directors and officers

construction

environment

pollution

broadform

Relevant legislation may include:

Insurance Contracts Act

Insurance Agents and Brokers Act

Consumer Credit Code

Privacy Act

Contracts Law

Trade Practices Act

secrecy laws

industry codes of practice

occupational health and safety (OH&S)

environmental

building or construction

hazardous materials

motor vehicle

Client or company policy and guidelines may include:

policies and procedures in relation to risks

claims

loss

loss recovery

codes of practice

clerical

information technology and administrative systems

complaints and dispute resolution procedures

Australian Institute of Chartered Loss Adjusters (AICLA) Charter of Objects and Professional Conduct

Sources of recovery may include:

liable parties

sale of goods

salvage and disposal

other insurers

Rights of recovery may include:

subrogation

salvage

reinsurance

contribution

industry agreements

Documentation may include:

reference to all evidence/information considered

reasons for adopting/incorporating certain evidence/ information preferred over other evidence/information

the basis on which the decision was determined

The insurance industry should adopt a range of improved consumer protection policies and practices with respect to its use of genetic information (including family history) for underwriting purposes. New laws and practices should ensure that: genetic information is only used in a scientifically reliable and actuarially sound manner; reasons are provided for any unfavourable underwriting decision; industry complaints handling processes are strengthened and extended to cover underwriting decisions; and industry education and training about genetics are improved.